I&M Group PLC Records 24% Growth in Profit Before Tax for Third Quarter 2024

Key Financial Highlights

Income Statement Performance:

• The Group’s Profit Before Tax increased by 24% to KES 14.1 billion in Q3 of 2024, up from KES 11.4 billion over the same period in 2023.

• Operating revenue grew by 20%, while the operating profit increased by 24% to KES 18.9 billion.

• Net Interest Income rose significantly by 37%.

• Loan loss provisions increased from KES 4.6 billion in 2023 to KES 5.5 billion in 2024, reflecting the Group’s consistent attention to quality of the earnings assets portfolio.

• Operating expenses, excluding loan loss provisions, rose by 16%, driven by investments in technology, talent, and branch expansion in Kenya and Rwanda.

 

Balance Sheet Performance:

• The Group’s Total Assets grew by 4% year-on-year to close at KES 568 billion.

• Customer deposits increased by 3% to KES 414 billion, supported by innovative product offerings and digitisation efforts.

• Retail lending expanded, though the overall loan portfolio declined by 2% to KES 281 billion.

• Net Non-Performing Loans (NPLs) stood at KES 14 billion, reflecting macroeconomic challenges.

• Regional subsidiaries demonstrated strong balance sheet growth in their local currencies, however their performance was impacted by the appreciation of the Kenyan Shilling.

I&M Group achieved strong operating revenues across all markets, with regional businesses contributing 28% of the Group’s Profit before Tax. This growth was fuelled by substantial gains in operating income, driven by a 49% increase in the corporate and institutional banking segment and a 28% increase in the retail banking segment.

Commenting on the results, I&M Group PLC’s Regional CEO, Mr. Kihara Maina, said, “The 24% increase in profitability are markers of a strong start of our iMara 3.0 strategy. Based on the strong performance, the Board of Directors announced an interim dividend of KES 1.30 per share which will be paid out in January 2025. As we celebrate I&M Bank’s 50th anniversary, we remain committed to customer centricity, operational efficiency and digital transformation to sustain profitability in the coming years.”

I&M Bank Kenya recorded a 21% increase in Profit Before Tax, driven by growth in Net Interest Income. The Bank also achieved a growth of 19% year-on-year in revenue and a 17% increase in operating profit. I&M Bank’s initiative to make banking more accessible through the ‘Ni Sare’ free bank to M-PESA and Airtel Money proposition has led to a 36% increase year-on-year in its customer base. Additionally, SME customer acquisition in Kenya surged by 270% since December 2023, following the extension of the Ni Sare Kabisa proposition to small businesses (Solo Biz) in April 2024.

This growth positions I&M Bank as one of the fastest-growing banks by customer numbers in the region, with over 600,000 customers now being served. By bridging the financing gap for SMEs and MSMEs, with innovative last-mile solutions, I&M Bank continues to play a leading role in the region’s financial sector. These efforts, combined with a strategic focus on brand relevance, have resulted in a 14% improvement in the Brand Awareness score, marking the fastest growth in the banking sector.

Speaking during the release of the Q3 Financial Results, I&M Bank Kenya CEO, Mr. Gul Khan stated, “We are delighted to report double-digit growth in both revenue and profits. Our commitment to providing relevant financial solutions for Kenyans and investing in a distinctly Kenyan brand has led to a 14% increase in brand awareness from 20% to 34%. More importantly, our growth has been achieved while maintaining a strong focus on customer centricity, as reflected in our consistent NPS (Net Promoter Score) of over 70% throughout the year. As we celebrate our 50th anniversary, I extend my heartfelt gratitude to our customers for their trust and loyalty to I&M Bank. I would also like to thank my staff for their commitment and hard work.”

“Through collaborations with our ecosystem partners, the Bank has disbursed approximately over KES 20 billion ($160 million) and positively impacted over 2.5 million lives”, he added.

 

Regional Performance Highlights

Regional subsidiaries of I&M Group demonstrated steady growth, with operating income contribution to the Group increasing to 30% from 29% in 2023. As of 30 September 2024, 83% of I&M Group PLC customers across the region were digitally active, reflecting the Group’s commitment to enhancing digital accessibility.

I&M Rwanda

I&M Bank Rwanda reported a 32% increase in operating income and a substantial 55% growth in Profit Before Tax for the period under review. This strong performance was fuelled by increased economic activity in the region with loans and deposits growing by 1% and 20% respectively. When measured in local currency, loans and deposits recorded an impressive growth year-on-year of 27% and 52% respectively, driving increases in both Net Interest Income and Non-Funded Income.

I&M Tanzania

In Tanzania, I&M Bank recorded a 34% growth in operating income, to reach KES 3.0 billion and an exceptional 73% increase in operating profit, driven by recoveries and a focused approach to asset quality management. Despite these gains, Total Assets and Loans & Advances in KES terms declined by 6% and 11% respectively, due to currency translation effects. However, in local currency, loans and advances grew by 11% year-on-year, while customer deposits rose by 19%.

I&M Uganda

I&M Bank in Uganda achieved a 21% growth in operating income and a 37% increase in operating profit. Total assets crossed the UGX 1 Trillion mark and grew 6% year-on-year to close at KES 37 billion. The Bank in Uganda recorded notable growth in the loan and deposit book of 24% and 7% respectively. These results highlight the Bank’s strong operational momentum and market penetration in the region.

Bank One, Mauritius

The Group’s Joint Venture investment in Mauritius, Bank One, recorded a 16% year-on-year increase in operating income. While Total Assets and net loans & advances declined by 7% and 15% respectively in KES terms, local currency growth was noted at 10% and 1% respectively. Customer deposits declined by 7% in KES terms but increased by 11% in local currency, underscoring the Bank’s resilience and adaptability in a competitive market.

I&M Group PLC’s consistent focus on innovation, operational efficiency, and customer-centric solutions underpins its strong financial performance. As the Group celebrates five decades of service excellence, it remains committed to driving sustainable growth and creating value for all stakeholders in the years to come.

 

50 Years of I&M Bank

I&M Bank celebrates its golden jubilee this year since the incorporation of the company in 1974. The entrepreneurial spark of the Founder and Chairman Emeritus ignited a vision of greatness that has seen I&M Bank grow from a community-based lending outfit to a regional financial services market leader.

 

About I&M Group PLC

I&M Group has a long-standing presence in the Kenyan market with presence in banking, insurance and real estate. The Group offers a full range of banking and financial services covering Corporate & Institutional Banking, Personal & Business Banking, Bancassurance, Wealth Management and Advisory services with presence spanning across 5 countries in Kenya, Uganda, Tanzania, Rwanda and Mauritius.

I&M Bank was founded in 1974 as a financial services company and later converted to a commercial bank. It is now a wholly owned subsidiary of I&M Group Plc, a public company listed at the Nairobi Securities Exchange (NSE).

I&M Group PLC is regulated by the Central Bank of Kenya, Capital Markets Authority of Kenya and the Nairobi Securities Exchange.

 

For more information visit  www.imbankgroup.com

I&M Bank Media Contact

Mwihaki Wachira

Group Executive General Manager , Marketing & Communication

mwihaki.wachira@imbank.co.ke

+ 254 719 088 205

 

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